4 Internet of Things Stocks to Watch for Gains Ahead
The exponential increase in demand for internet-enabled devices is driving the segment responsible for it strongly. The digital transformation brought about by the effective implementation of the Internet of Things (IoT) is promising because it uses the power of real-time data and knowledge. For this reason, you could take a closer look at the segment and keep an eye on some stocks for future investments.
Perspectives of the IoT market
The Internet of Things market, which was $ 170.6 billion in 2017, is expected to reach $ 561.0 billion by 2022. According to MarketsandMarkets data, an average annual growth rate of 26.9% is expected for the segment in the 2017-2022 forecast period.
The impressive growth expected in this segment is only justified given the boom in development and the demand for Internet-enabled products.
The growth of the IoT is determined by simple, unified connectivity
The demand for internet-enabled products is understandable because they offer their consumers, things and networks easy communication and connectivity. After all, the IoT forms the basis for the development of concepts such as smart cities, in which every aspect can be examined and controlled via internet-enabled devices.
Second, the effectiveness of IoT in areas such as healthcare, manufacturing, transportation, utilities, logistics, and the network has become a popular technology that businesses are rapidly transitioning to. The rapid acceptance of the technology in the industrial and commercial markets due to its user-friendliness and efficiency will rapidly advance the segment in the near future.
The effectiveness of IoT in manufacturing, also known as the Industrial Internet of Things (IIoT), promises higher productivity and better management. The new system is effective in location tracking, central monitoring and error prediction for easy maintenance, thus strengthening the competence.
After all, tracking down errors in a gigantic industrial facility and maintenance can be time-consuming, hampering production. However, with IIoT systems that provide real-time data, locating errors is much easier, which improves performance and increases production.
4 stocks to see
We have therefore selected four stocks that deal with IoT activities that you could add to your watch list. All of these stocks have a zacks rank 3 (hold). The full list of today's Zacks # 1 Rank stocks can be found here.
Microsoft Corporation MSFT is investing up to $ 5 billion in researching the Internet of Things and adding new features and services to Azure IoT. According to an analysis by Counterpoint Research, the company was ranked as the best IoT platform provider before Amazon.com, Inc. AMZN, Huawei, PTC Inc. PTC and International Business Machines Corporation IBM.
Microsoft's expected earnings growth rate for the current year is 20%. The Zacks consensus estimate for the company's earnings for the current year has moved 2.3% north over the past 60 days. Microsoft belongs to Zacks Computer Software industry.
Cisco Systems, Inc. CSCO is a major provider of corporate network hardware. The company is involved in various activities in the area of internet-enabled devices or IoT. On the hardware side, Cisco develops network hardware for a large number of connected devices. On the front of the software, the company offers the Cisco Kinetic platform and other tools for managing IoT data and products.
Cisco Systems' expected earnings growth rate for the current year is 1.6%. The Zacks consensus estimate for the company's earnings for the current year has moved 2.3% north over the past 60 days. Cisco Systems is part of Zacks Computer - Networking.
Apple Inc. AAPL is a well-known name in the IoT market with its many products in the field of smart home products. The company is part of a new working group consisting of Amazon, Google and the Zigbee Alliance that focuses on "Project Connected Home over IP". The group is consistently investigating the development of a new connectivity standard that increases the compatibility between smart home products.
Apple's expected earnings growth rate for the current year is 3.6%. The Zacks consensus estimate for the company's earnings for the current year has moved 0.8% north over the past 60 days. Apple belongs to Zacks Computer - Mini-Computer.
Amazon.com, Inc.'s remarkable advances in smart home products are impressive. The company is stepping up its efforts in the area of Internet-enabled devices. Amazon's Alexa is being integrated into smart devices, and the company is now focusing on integrating more IoT support into Amazon Web Services.
Amazon.com's expected profit growth rate for next year is 91.4%. The Zacks consensus estimate for the company's earnings for the current year has moved 1.4% north over the past 30 days. Amazon belongs to Zacks Internet - Commerce.
More stock news: this is bigger than the iPhone!
It could be the mother of all technological revolutions. Apple has sold just 1 billion iPhones in 10 years, but a new breakthrough is expected to bring in more than 27 billion devices in just 3 years, creating a $ 1.7 trillion market.
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